The Life Insurance Corporation of India (LIC) introduced a number of welfare programs for its agents and staff. These actions include raising the gratuity cap, increasing the renewal commission for rehired agents, increasing term insurance coverage, and increasing family pension.
A brief about a windfall for LIC agents and staff! The government raises the cap on gratuities and announces a uniform 30% family pension rate
Over 13 lakh agents and over 1 lakh regular employees will profit from these welfare initiatives, according to the Ministry of Finance, as LIC seeks to increase the penetration of insurance in the nation.
The gratuity cap for LIC agents has been raised from Rs. 3 lakh to Rs. 5 lakh as part of the welfare initiatives. According to a statement from the government, “it will significantly improve the working condition & benefits of LIC agents.”
LIC agents are not now eligible for a renewal commission on any transactions made through the previous agency. Reappointed agents will, however, be eligible for renewal commission under the new regulations. According to the administration, this will give agents more financial stability.
Additionally, the present Rs 3,000–10,000 term insurance cover for agents has been increased to Rs 25,000–150,000. The ministry continued, “This improvement in term insurance will significantly benefit the families of deceased agents, offering them a more significant welfare benefit.”
According to the government, a uniform 30% family pension will be provided for the “welfare of LIC employees”.
Separately, LIC announced that its net profit for the quarter ending in June increased significantly from the net profit of Rs 683 crore in the same quarter last year to Rs 9,544 crore. According to LIC’s regulatory filing, the total income rose to Rs 1,88,749 crore for the June quarter from Rs 1,68,881 crore in the same quarter last year. Nevertheless, the first-year premium for the reporting quarter decreased to Rs 6,811 crore from Rs 7,429 crore in the corresponding quarter last year.
